February 22 2020
Startups are the mainstream in today’s business. They present a disruption in the market and are loved by most investors. Most of the startups turn into a fortune in the long run and hence, investing in startups is one of the most lucrative options for most retailers as well as major investors. However, the challenges for startups are a lot. They are usually short of money and always need more money to operate, they might have operating knowledge/industry knowledge, but there is still a gap with respect to legal and compliance knowledge.
A cost-effect comprehensive Startup Compliance Package is what every startup is looking for. A startup or its founders are always more dedicated and worried about funds, business opportunities, and operations. Finding resources and time for compliance and legality can be a challenge. This is why the Annual Compliance Package has become quite popular among startups. This saves them from unnecessary hiring and uncompromised professional services from experts in the industry.
• Type of entity
The first and foremost important thing with respect to startup is the selection of the type of entity. There are several options with respect to the entity structure like a sole proprietorship, partnership, a limited liability partnership, corporation, etc. This is certainly not an easy decision and depends on various factors like the scale of business, type of investors, risk, profit sharing dynamism, etc.
Once the type of entity has been finalized, legalities for the same have to carried out. The Startup Compliance Package helps startups in registering the startup with regulatory bodies. They also help in formulating necessary documents for the purpose of registration which might be a tricky task without legal knowledge.
• Annual Maintenance
For many business entities, maintaining accounts, statements, and various other business transaction entries forms a key part of Annual Compliances. From deciding the beneficial accounting type, cash or accrual, to using appropriate software and passing appropriate entries to capture day to day transactions correctly, are included in an ideal Annual Compliance Package for the startups.
• Notification of Other Statutory Requirements
There can be several transactions that may induce financial reporting or statutory requirements with the regulatory agencies. These are covered under the Startup Compliance Package but depending on the complexity of the transaction an additional fee might be levied on the same. For instance, on breaching a specific threshold, the books of accounts have to be audited. Similarly, there might be some statutory filing requirements of GST forms or TDS returns based on the financial transactions executed by the partnership, business entity or executives. With consistent vigilance from the legal professionals offered by the packages, the startups are ensured to be legally compliant.
• Tax Planning and Saving Options
The Company Compliance Package may provide for tax planning and lesser tax dues with effective decision making, smarter business moves, etc. This ensures the startup is liable for minimum possible tax due to effective planning and decision making.
Neusource Startup Minds is a Business Management Consultant Company, offers the best business services like Limited Liability Partnership Compliances, Bookkeeping and Accounting Services, Annual ROC Compliances, and many other business services.